Wisconsin’s unique Medicaid “look-forward” can impose a divestment penalty on the institutionalized spouse if the community spouse (the spouse at home) gifts or transfers assets for less than fair market value after Medicaid eligibility. This review extends for five years from the day the institutionalized spouse was determined eligible, meaning well-intended transfers—helping adult children, charitable gifts, retitling, transfers due to death—may disrupt benefits.
To preserve Medicaid benefits while meeting family goals, asset titles and beneficiary designations need to be coordinated and any gifts need to be reviewed for Medicaid compliance prior to being made.
Avoid surprises after Medicaid approval. Give us a call today to align gifting, estate, and long-term care plans with Wisconsin’s look-forward requirements to preserve Medicaid eligibility.
